Tag Archives: groundwater pollution

How to Find the True Cost of Water

At current rates of consumption, the demand for water worldwide will be 40% greater than its supply by 2030, according to the UN. Portfolio managers are realizing that physical, reputational and regulatory water risk could hurt their investments, particularly in thirsty industries such as food, mining, textiles and utilities.

One worry is that shocks to supply could drown or dry out a company’s assets. In recent years Coca-Cola has been forced to close plants in India because of drought. In 2019 floods in America’s Midwest caused disruptions at the facilities of two food giants, Cargill and Tyson Foods. A survey by CDP, a non-profit firm, found that 783 big listed companies had faced a total of $40bn of water-related losses in 2018.

Another concern is that the price a company pays for water could rocket. The market price of water does not reflect the environmental and social costs of using it. Government subsidies also mean that companies often do not pay for its true cost. As aquifers are depleted, though, subsidies could become more costly and unpopular, forcing governments to retract them. S&P Global Trucost, a data provider, reckons that if Fortune 500 companies paid the true cost of water, based on estimates of scarcity, rather than current prices, their profit margins would shrink by a tenth. Margins for food, drink and tobacco firms would fall by three-quarters.

Disclosures of water risk are even patchier than those of greenhouse-gas emissions…Established names like Bloomberg and S&P Global are plugging the gap, as are startups. The result is that investors can approach management armed with data rather than questions. “We are getting rid of the black box that companies hide in.” 

Ceres, a non-profit firm, scores businesses on everything from direct water management to risks in the supply chain. Those seeking more detail can use visual tools, such as Bloomberg’s “maps” function, which plots a company’s facilities over a heat map based on water stress. (California is the same color as swathes of sub-Saharan Africa; far-eastern Russia looks a lot like western Europe.) Firms like Aquantix go further, and try to predict the financial cost of water risk.

The accuracy of such forecasts is not yet proven. For Andrew Mason of Aberdeen Standard Investments, though, they are still useful. They show companies that investors care about water risk and encourage them to share data. “This is where carbon was ten or 15 years ago,” he says.

Excerpt from An expanding pool: Investors start to pay attention to water risk, Economist, Jan. 9, 2021

Why Texas Loves Nuclear Waste

A proposal to take in more out-of-state waste at a West Texas radioactive waste disposal site has encountered an unlikely argument against it: that it can harm the booming oil and gas industry.  Waste Control Specialists is asking state lawmakers for permission to take in more low-level radioactive waste — such as rags, syringes and protective clothing from nuclear plants or hospitals — from outside of Texas for disposal at its Andrews County facility near the Texas-New Mexico border.

Environmental groups have long opposed radioactive waste at the site, which they say could jeopardize groundwater.  Environmentalists at the hearing were joined by Tommy Taylor, director of oil and gas development for Fasken Oil and Ranch, which operates in Andrews County.  Quoting from a handbook of the International Atomic Energy Agency, Taylor said radioactive waste dumps should be sited away from “land with exportable minerals and energy resources.”  “Don’t put it in an oilfield,” he said. “The oil and gas resources of the Permian Basin are too important for the security of the state of Texas and the United States to put it at risk with storing spent fuel rod casks in this region.”

Spent fuel is not designated as low-level waste, but he said he worried that designation could change.  It’s unusual for a representative of an oil and gas company to publicly criticize at the Capitol another segment of the energy industry…

But If Waste Control Specialists becomes insolvent the state might have to take control of the facility.  The legislation poposed by Texas lawmakers lifts the cap on the amount of out-of-state, low-level waste the company can accept at the 8.9 million cubic feet-capacity site from 30 percent to 60 percent.  The company currently pays six Austin lobbyists as much as $240,000 to persuade lawmakers of the wisdom of its plans….Waste Control Specialists’ partnership with Orano USA, called Interim Storage Partners LLC, has asked the Nuclear Regulatory Commission for permission to accept used nuclear fuel — high-level waste — at the Andrews facility.  Waste Control Specialists, which already disposes of other kinds of radioactive waste at its site in Andrews County, has been trying to position itself as a short-term alternative to Yucca Mountain, the Nevada site long ago selected by the federal government for storage of radioactive waste. Yucca had been bedeviled by decades of political quarrels, even as radioactive waste has piled up at the country’s nuclear power plants.

Excerpt from Asher Price, Radioactive waste site seeks more out-of-state material, Statesman, Mar. 30, 2019

Radioactive Beaches: Fukushima at 2017

Six years after the Fukushima nuclear reactor disaster in Japan, radioactive material is leaching into the Pacific Ocean from an unexpected place. Some of the highest levels of radioactive cesium-137, a major by-product of nuclear power generation, are now found in the somewhat salty groundwater beneath sand beaches tens of kilometers away, a new study shows.

Scientists tested for radioactivity at eight different beaches within 100 kilometers of the plant, which experienced three reactor meltdowns when an earthquake and tsunami on March 11, 2011, knocked out its power. Oceans, rivers and fresh groundwater sources are typically monitored for radioactivity following a nuclear accident, but several years following the disaster, those weren’t the most contaminated water sources. Instead, brackish groundwater underneath the beaches has accumulated the second highest levels of the radioactive element (surpassed only by the groundwater directly beneath the reactor).

In the wake of the 2011 accident, seawater tainted with high levels of cesium-137 probably traveled along the coast and lapped against these beaches, proposes study coauthor Virginie Sanial, who did the work while at Woods Hole Oceanographic Institution in Massachusetts. Some cesium stuck to the sand and, over time, percolated down to the brackish groundwater beneath. Now, the radioactive material is steadily making its way back into the ocean. The groundwater is releasing the cesium into the coastal ocean at a rate that’s on par with the leakage of cesium into the ocean from the reactor site itself, Sanial’s team estimates.

Excerpts from Radioactive material from Fukushima disaster turns up in a surprising place, Science News, Oct. 2, 2017

See also Unexpected source of Fukushima-derived radiocesium to the coastal ocean of Japan